decrease). If there is no effect on Recording Transactions, Preparing Journal Entries, Posting to
T-Accounts, Preparing a Statement of Financial Position, and Evaluating the Current Ratio (P2-
5) BCE Inc., Canada's largest communications company, provides a comprehensive and
innovative suine of broadband communications and content services to consumer, residential,
business, and governmente customers in Canada. The following is BCE's (simplified) statement
of financial position from a recent year:
CHAPTER 2 Investing and Financing Decisions and the Accounting Srrtem 107 Assume that the
following transactions (in millions of dollars) occurred in fiscal year 2021 (ended on December
31, 2021): a. Issued additional shares for $200 in cash. b. Borrowed $6,300 from creditors; due
in 10 years. c. Purchased additional investments for $1,500 cash; one-fifth were long-term and
the rest were short-term. d. Purchased property, plant, and equipment; paid $4,650 in cash and
$850 with additional long-term bank loans. e. Lent $250 to associated companies that signed a
six-month note. f. Sold short-term investments costing $200 for $200 cash. Required: 1. Prepare
a journal entry for each transaction. 2. Create a T-account for each item on the statement of
financial position and include the December 2020 balances. Post each journal entry to the
appropriate T-account. 3. Prepare a trial balance as at December 31, 2021. 4. Prepare a statement
of financial position for BCE based on the T-account ending balances at December 31, 2021. 5.
Compute BCE's current ratio for fiscai ycar 2021. What does this suggest about the company?.
decrease). If there is no effect on Recording Transactions, Preparing.pdf
1. decrease). If there is no effect on Recording Transactions, Preparing Journal Entries, Posting to
T-Accounts, Preparing a Statement of Financial Position, and Evaluating the Current Ratio (P2-
5) BCE Inc., Canada's largest communications company, provides a comprehensive and
innovative suine of broadband communications and content services to consumer, residential,
business, and governmente customers in Canada. The following is BCE's (simplified) statement
of financial position from a recent year:
CHAPTER 2 Investing and Financing Decisions and the Accounting Srrtem 107 Assume that the
following transactions (in millions of dollars) occurred in fiscal year 2021 (ended on December
31, 2021): a. Issued additional shares for $200 in cash. b. Borrowed $6,300 from creditors; due
in 10 years. c. Purchased additional investments for $1,500 cash; one-fifth were long-term and
the rest were short-term. d. Purchased property, plant, and equipment; paid $4,650 in cash and
$850 with additional long-term bank loans. e. Lent $250 to associated companies that signed a
six-month note. f. Sold short-term investments costing $200 for $200 cash. Required: 1. Prepare
a journal entry for each transaction. 2. Create a T-account for each item on the statement of
financial position and include the December 2020 balances. Post each journal entry to the
appropriate T-account. 3. Prepare a trial balance as at December 31, 2021. 4. Prepare a statement
of financial position for BCE based on the T-account ending balances at December 31, 2021. 5.
Compute BCE's current ratio for fiscai ycar 2021. What does this suggest about the company?
